What can i do?

arghmoney

Hi there, im new on here and need help, 3 years ago myself and my wife decided to buy a house, we were renting a flat at the time, had no savings and had a loan of about £7000,

Buy a house, everybody told us, you will soon make money on this!!!

Well, after speaking to a financial 'expert', we were advised that we could have a 95% mortgage and the mortgage borrower would lend us a non-secured loan to cover our loans and for a deposit..

So there you have it, We have a £105,000 interest only mortgage of £554.39 per month over 30 years (why that should matter i dont know as we never pay it pack)

And we have a unsecured loan of £22,000 over 30 years also which we pay £134.18 per month

both at an interest rate of 6.29%

@ a 5 years fixed rate ( so we have two years left)

with my wife about to be made redundent, i really need advice on how we can change this as somwhere along the line im sure this was bad advice

The house cost us £117,000 with fees about 118,600 and is now worth about £100,000 - 108,000 (not sure but thats the asking price of a couple by us)

now i know, we couldnt of predicted the house market to fall..

but im getting stressed that even if we were to sell the house we would be stuck with a £20,000 loan after we have paid all this money over the last 3 years!!

Please Please Please Please help

maninthestreet

Get over to the DFW wannabe board, and post you statement of affairs.

originalmiscellany

Looks to me like you're in quite a predicament -as maininthestreet says, you have to post it on the DFW wannabe board, as fundamentally, you've got some quite major weaknesses that need to be addressed;

Your initial deposit was never enough - minimum 10% is what's needed -
The "mortgage adviser" certainly didn't offer you good advise, he offered you a solution which really in the cold light of day was not something that you could either afford or in fact be wise to go down-
It's interest only, and you haven't mentioned how you are saving to lower your mortgage - £554 a month just to service the mortgage is a lot

That's just my initial thoughts, sorry to be so negative, hope that your DFW post can provide some useful solutions.

arghmoney

i know i know, and to be honest its one of those 'if i had the chance to do it again' situations... there must be some sort of help advice out there though